Global Beauty Industry Faces "Perfect Storm" of Rising Costs and Supply Chain Delays Due to Iran War

The beauty industry faces rising costs for packaging and transport as the Iran war chokes the Strait of Hormuz, forcing firms to use air freight and rail.

By: AXL Media

Published: Apr 4, 2026, 8:59 AM EDT

Source: Information for this report was sourced from Reuters

Escalating Costs in the Cosmetics Supply Chain

The Iran war is creating a ripple effect across the global beauty industry, impacting the production costs of essential items such as plastic jars, lipstick tubes, and skincare containers. At the Cosmoprof trade show in Italy, executives highlighted a "perfect storm" of energy price inflation and logistics hurdles. Kiko, a major Italian cosmetics group, estimates that these disruptions will add approximately 1.5 million euros in additional costs over the year. The rising price of oil is a primary driver, as it directly increases the cost of chemical components and the plastic resins required for packaging.

Logistics Strains and Container Shortages

A critical issue facing the sector is the lack of available shipping containers, many of which are currently stalled in the Middle East due to the blockade of the Strait of Hormuz. Simone Dominici, CEO of Kiko, noted that goods are no longer moving efficiently, leading to tighter availability and higher prices for materials sourced from the Far East. This bottleneck is affecting industry giants and contract manufacturers alike, as they struggle to maintain the flow of products to more than 1,000 stores worldwide.

Lengthening Lead Times for Global Manufacturers

Contract manufacturers such as Ancorotti Group and Intercos report that while they have not yet faced total supply shortages, delivery timelines have been severely extended. Roberto Bottino, CEO of Ancorotti, stated that shipping routes that previously took eight weeks now require 12 to 14 weeks due to port congestion and the need for longer transit paths. These delays are forcing companies to adjust their production schedules and manage client expectations as the volatility in the Persian Gulf persists.